Owner of Miami's Famous Eden Roc Hotel Wins Appeal: Marriott Can Be Removed as Manager

Owner of Miami's Famous Eden Roc Hotel Wins Appeal: Marriott Can Be Removed as

PR Newswire

MIAMI, March 27, 2013

MIAMI, March 27, 2013 /PRNewswire/ --In a major victory not only for the
owner of the historic Eden Roc Hotel in Miami Beach, but for hotel owners
across the country, Pryor Cashman LLP (on behalf of its client, Eden Roc) has
successfully argued to a New York appeals court that it should vacate an
injunction requiring Eden Roc to accept the hotel management services of
Marriott International and its subsidiary, Renaissance Hotel Management
Company, LLC. The appellate court agreed and issued an order on March 26,
2013. (Marriott International, Inc. v. Eden Roc, LLLP, Index No.

Marriott argued that its management agreement with Eden Roc could not be
terminated by Eden Roc during the full term of that agreement, which could
have lasted another 43 years. Although Marriott obtained an injunction from
the lower court securing its place as Eden Roc's manager against Eden Roc's
wishes, a unanimous panel of the Appellate Division, First Department of New
York, agreed with Pryor Cashman that the parties' hotel management contract
"is a classic example of a personal services contract that may not be enforced
by injunction."

The dispute has been brewing for over a year. Eden Roc terminated its
agreement with Marriott on March 30, 2012, citing a number of defaults.
Marriott and Renaissance, however, refused to vacate the hotel or acknowledge
the agreement's termination. In October 2012, therefore, Eden Roc and a team
of transition professionals attempted to remove Marriott from the premises and
to install in its place Eden Roc Management Company, an affiliated operating
unit of the hotel's owner that is comprised of seasoned managers of leading
lifestyle brands. Marriott resisted and obtained the injunction preventing
its removal.

The appellate court's ruling firmly establishes that hotel management
companies cannot insulate themselves from removal when they operate pursuant
to classic management services agreements. The decision equally vindicates
the rights of hotel owners to reclaim their valuable property when they see
fit to do so.

"This decision marks the beginning of a new era for Eden Roc, one of the most
iconic luxury hotels on Miami Beach," said Diego Ardid, Vice President of Eden

"This important decision is a vindication of Eden Roc's right to remove
Marriott from the hotel, and gives hotel owners across the country legal
footing to protect their investments. A hotel manager is barred from
commandeering a property against the owner's wishes. Any doubts in that
regard have been laid to rest," said Todd E. Soloway, a partner at Pryor
Cashman, LLP who, along with partners Joshua D. Bernstein and William Charron
represented Eden Roc.


Kathy O'Brien

SOURCE Pryor Cashman LLP
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